How Gambling Companies Affect the London Stock

With a 300 year history, the London Stock Exchange is one of the oldest and most diverse international equity markets in the world. The London Stock Exchange is one of Great Britain’s equity markets, reserved for big and renown brands. Generally, companies wishing to join the LSE must fulfill a number of requirements before being admitted.

Prior to joining the LSE, companies must have their businesses independently valued, as well as determine what percentage of their business will be offered for sale on the LSE. Unlike other stock markets, the LSE operates by offering potential investors units of a business in the form of securities.

Throughout the years, various renown and diverse businesses have operated on the LSE. Recently, however, the number of brands belonging to a particular branch of the entertainment industry has increased substantially. Today, the number of gambling companies on the LSE is larger than ever. Of course, this is not to say that the LSE is no longer a diverse international equity market, but while other business might not be powerful enough to influence the LSE, the outstandingly profitable gambling sector has certainly had an impact on the stock market.

 

Betting Operators on LSE

First of all, it is important to point out what has led to the expansion of the gambling industry in the UK, resulting in an increased number of gambling companies on the LSE. Many factors have contributed to the growth of the gambling industry, but one law has had a significant effect on its expansion.

The Gambling Act 2005, which went into force in 2007, liberalized the industry in various ways. Under the Gambling Act 2005, companies could finally advertise on TV. What is more, gambling revenues generated in the UK increased substantially after the Act went into effect – revenues generated from gambling amounted to only $11B (£8.36 billion); in September 2017,  those figures reached a record of $18.6B (£14 billion).

According to Casino Games Pro, the UK gambling market has grown substantially over the past decade, creating harsh competition. Nowadays, brands that want to remain on top must popularize their business and make it appealing to potential investors. And since there is hardly a better way to attract investors than introducing your business on the London Stock Exchange, one of the biggest and most renown equity markets in the world, big gambling companies, started emerging.

Tendencies show that the gambling industry will keep its upward trend in the UK. Consequently, the number of gambling companies on the London Stock Exchange, as well as their influence, will keep rising.

 

Biggest Gambling Companies on the LSE

Now that we learned what has caused the rise of gambling companies on the LSE, let’s focus our attention on bigger brands operating on the stock market.

Paddy Power Betfair Plc

Created after the merge of Paddy Power and Betfair, Paddy Power Betfair Plc is one of the biggest brands operating on the Main Market of the LSE. Currently, Paddy Power holds 52 percent of the business and Betfair owns 48 percent.

Paddy Power Betfair Plc operates in the UK, Ireland, Australia, and the U.S. The company generated over $2.25B (£1.7 billion) in revenues in 2017. As mentioned above, the company operates on the LSE and is part of the FTSE 100 Index.

William Hill Plc

Established in 1934, William Hill Plc is one of the oldest bookmakers on the UK market. Today, the company’s market value is roughly $3,313 (£2,500). The company is traded on the LSE and is a member of the FTSE 250 Index.

In 2016, an attempt to acquire the gambling legend was made by the consortium Rank Group-888 Holdings. However, the operator turned down the offer, claiming the offer significantly “undervalued the company.”

GVC Holdings Plc

Founded 14 years ago in Luxembourg, GVC Holdings Plc is one of the biggest names on the UK gambling market, operating on the LSE. The company is a constituent of the FTSE 100 Index. Initially, GVC Holdings Plc focused on local gambling activities. However, in 2012, the company began its steady expansion by purchasing Sportingbet.

GVC Holdings Plc trades under various brands, such as PartyPoker, Ladbrokes, bwin, Sportingbet, etc.) and reached gathered $1044M (£788 million) in revenues in 2017.

888 Holdings Plc

Undoubtedly, everyone has heard of 888 Holdings – this is one of the highly praised online gambling companies. The company was founded in early 1997 and ever since then has been focusing on the management of high-class gambling brands, such as 888poker, 888bingo, 888casino, etc.

888 Holdings Plc is traded on the LSE and is a member of the FTSE 250 Index. Recently, the company was imposed heavy fines by USA and UK regulators, which has had its effect – 888 Holdings acquired little over $543M (£410 million) in revenues in 2017.

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